Music Sponsorship Spending To Increase This Year
Sales in the paid recorded music industry continue to struggle
but many marketers believe in the connection between branding and sponsoring music festivals. Companies plan to spend $1.09 billion sponsoring musicians, festivals and tours this year. In 2009, according to the IEG sponsorship report, marketers spent a bit less – $1.08 billion.
Spending intentions on type of music activities varies. Companies plan to increase sponsorship spending as follows:
- Music properties 3.4%
- Causes 6.1%
- Entertainment tours and attractions 5.7%
Industries that are most like to steer sponsorship dollars toward musicians include automotive, apparel, beverage, camera, insurance and technology.
The IEG sponsorship report notes the following deals which are representative of the nature of music sponsorship – large national festivals and tours are more successful at attracting major corporate sponsors than local events.
- Canon U.S.A. – Bonnaroo Music & Arts Festival
- Red Bull – Live Nation
- Sony Computer Entertainment – Coachella Valley Music and Arts Festival
It’s not just festivals that are securing funding. Well-known music properties are also signing deals again. For example, Nordstrom recently announced its sponsorship of Michael Buble’s 2010 Crazy Love Tour. And Clorox is promoting its Kingsford charcoal and KC Masterpiece barbeque sauce brands by setting up on-site tailgating activities at Keith Urban events.
According to William Chipps, IEG Sponsorship Report’s senior editor, “[w]hile the economy appears to be rebounding, many marketers continue to take a cautious approach to sponsorship by focusing on large, established properties that provide broad reach.”
Traditionally, artist representatives reach out to sponsors with funding requests but this year, Clorox turned the tables. The company contacted several different country music stars before signing Keith Urban. This strategy shows that the level and type of sponsorship can cover a wide range of activities and products but marketers seem to know that the connection with consumers through music makes a difference at the cash register.
[Sources: Music Sponsorship Spending To Total $1.09 Billion In ’10. Sponsorship.com. 26 Apr. 2010. Web. 30 Apr. 2010; Nordstrom Announces Exclusive U.S. Sponsorship of Michael Buble’s 2010 ‘Crazy Love Tour’. Nordstrom.com. 8 Dec. 2009. Web. 30 Apr. 2010; Chipps, William. IEG 2010: Clorox Cleans Up With Sponsorship. Sponsorship.com. 24 Mar. 2010. Web. 30 Apr. 201 ]